Ontario MP calls for igaming launch postponement over land-based fears

An MPP in Ontario has called for the postponement of the launch of igaming in the province, suggesting the land-based sector could be decimated as a result.

In a press conference, Windsor West MPP Lisa Gretzky, the cousin of NHL legend Wayne Gretzky, questioned whether the sector could cope, citing the potential impact on social causes in the province.

Gretzky referred to a recent report suggesting that Ontario’s government could lose as much as $3bn over the next five years, with municipal contributions being reduced by as much as $190m.

In addition, Gretzky suggested as many as 2,500 jobs could be lost in the land-based casino sector.

At present, many of Ontario’s casino workers are still on furlough following the Covid-19 pandemic, which has had a significant impact on the sector.

“They [Ontario’s provincial government] have to make sure that the workers that are currently off get called back, that those jobs are secure,” Gretzky said.

“Indigenous leaders, workers, unions, chambers of commerce, and mayors across the province are asking for the provincial government to not implement igaming without the assurance that the thousands of land-based casino workers will be called back immediately,” she added.

Ontario’s igaming operators will be taxed at a rate of just 20% on their gross gambling revenue (GGR), far below the current land-based taxation rate of 55%, with taxation revenue slated for state causes.

“Billions of dollars that go towards out publicly funded healthcare, our education, infrastructure, and other sectors that we all rely upon. As well as transfers to our municipalities for municipally funded services,” Gretzky said.

The Windsor West MPP also took aim at the Ontario provincial government over a perceived lack of transparency and general ambiguity in the government’s plans to regulate the vertical, suggesting that more detail must be provided prior to any launch taking place.

The calls echo those of Ontario’s largest casino workers union, Unifor, which has called on legislators to bring the tax rates in line to prevent any catastrophic impact on land-based casinos.

“We are looking at significant job losses and an unfair playing field,” a spokesperson for Unifor told local media.

“It’s still unknown how many (online) casino gaming companies will be launched, but it will have a significant impact on current operations, union jobs, and revenues,” he added.

In a nod to the potential middle way, Unifor’s spokesperson continued: “We are trying to draw people’s attention to this, (the plan) should be adjusted to make the bricks and mortar more competitive.

“We would like to see the start date changed and a commitment from finance (ministry) to take a closer look at this than they have so far,” he added.

Ontario chamber of commerce president and CEO, Rocco Rossi, also added his support to calls for a rethink of igaming legalisation in a letter to Ontario Attorney General Doug Downey.

Ontario’s igaming market is slated to launch on April 4.